WalletHub, Financial Company
Permalink Report Abuse
The minimum liability car insurance requirement in New Jersey is $5,000 in property damage liability (PD) insurance. Unlike most other states, New Jersey does not require drivers to carry bodily injury liability (BI) insurance.
Key Things to Know About the Required Car Insurance in New Jersey
- Covers other’s property damage and your medical expenses. Drivers in New Jersey are required to have PIP insurance, which pays for the driver’s and passengers’ medical bills after an accident, regardless of fault. Property damage liability insurance pays for damage to others’ property caused by an accident you were at fault for.
- The minimum liability requirements may not be enough. Even though New Jersey’s no-fault system requires drivers to file injury claims with their own insurer, the at-fault driver can be sued if they cause an accident that results in $50,000 in personal injury protection coverage and uninsured motorist bodily injury coverage equal to the minimum required liability limits. As a result, it’s a good idea to purchase bodily injury liability insurance even though it’s not required, since it can help cover legal fees and other expenses if you cause a serious accident.
- Liability insurance will not cover all events. Drivers should also consider purchasing other types of car insurance in order to better protect themselves. For instance, both collision insurance and comprehensive insurance cover damage to the policyholder’s car.
- There are penalties for driving without the minimum requirements. If New Jersey drivers do not purchase New Jersey’s minimum liability requirements, they will be subject to penalties for driving without insurance such as hefty fines and license suspension.
To learn more, check out WalletHub’s guides on how much car insurance you need and cheap car insurance in New Jersey.
People also ask
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Did we answer your question?